South Africa signs operator agreement for first LNG terminal
Richards Bay on the Indian Ocean coast will be home to the new terminal
The chair of South African port authority Transnet said the new terminal would help alleviate the country’s energy supply challenges
TRANSNET National Ports Authority has signed two terminal operator agreements for South Africa’s first LNG import terminal.
TNPA, which operates South Africa’s major seaports, confirmed that the terminal would be built at the port of Richards Bay, just north of Durban on the Indian Ocean coast.
The authority has signed a terminal operator agreement with Zululand Energy Terminal to design, finance, build and operate the LNG terminal over a 25-year period.
TNPA chair Andile Sangqu said the terminal was a response to the country’s energy supply challenges.
“By enabling the importation of liquefied natural gas, we are promoting the development of a sustainable source of energy to meet limited and depleting gas supplies,” he said.
Another TNPA board member, Tshokolo Nchocho, said: “By modernising existing infrastructure, this project not only enhances maritime fuel services but also plays a critical role in supporting global shipping operations, ensuring efficiency and competitiveness in an evolving energy landscape.”
Royal Vopak, which owns Zululand Energy Terminal with Transnet Pipeline, said phase one of the project would involve a floating storage unit with a capacity of 135,000 cu m-174,000 cu m. That will be replaced in phase two by an onshore storage tank, which will have a capacity of up to 220,000 cu m.
A final investment decision on the terminal is expected in 2026, but is contingent on “timely customer commitments”, Royal Vopak said.
Alongside the LNG terminal, TNPA has signed a 25-year concession with FFS Tank Terminals for the development and operation of a liquid bulk terminal specialising in bunker fuels at Richards Bay.
